In this Q&A conversation with BenefitsPRO, Stephani Manning, senior vice president of Innovative Captive Strategies, discusses the ins and outs of captive insurance and when and where it's the best fit for an organization.

What are the advantages of captive insurance?

The core advantage of captive insurance is that it generally allows organizations to take greater control over health insurance expenses. This is especially important today as prices continue to inflate. In essence, instead of "rolling the dice" each year in the volatile traditional insurance market, a group captive can provide long-term stability and the opportunity to drive down premium costs. Through control, stability and opportunity, captive insurance has numerous ways of providing considerable value.

Why do certain companies choose to seek out captive insurance over others?

First, it's important to understand that a "group captive" is just that — a group of companies who partner together to form their own insurance company. Captive insurance provides ownership over one of the largest business expenses — health insurance — while sharing resources with other like-minded employers who can often integrate best practices on health and wellness initiatives to enhance their companies collectively.